Parent companies often treat local subsidiaries as cost centres. Auditors still need evidence that related-party transactions are complete, authorised, and disclosed. Incomplete matrices are a frequent review note before report sign-off.
Start from contracts, not from the ledger alone
Collect service-level agreements, guarantee letters, and warehouse sharing memos even if invoices are booked as generic management fees. The ledger rarely names the counterparty clearly enough for disclosure tables.
Pricing support
When mark-ups look unusual compared with third-party rates, prepare contemporaneous explanations. Auditors are not tax officers, yet unsupported pricing invites questions about whether balances are fairly stated.
Year-end confirmations
Align intercompany balances with the parent’s consolidation team before auditors send confirmations. Late mismatches create circular emails across time zones and delay the opinion.